LIPA Rates Hit Five Year Low
Long Island Power Authority president and CEO Kevin S. Law announced that he is reducing the Power Supply Charge by 6 percent for LIPA’s 1.1 million customers. LIPA’s Power Supply Charge includes the costs for fuel and energy the Authority purchases on behalf of its customers, which accounts for more than 50 percent of LIPA’s nearly $4 billion annual operating budget. Thus, the bill impact will equate to an overall bill reduction of 3 percent, approximately
4.70 for the average residential customer.
“I am pleased to be in a position to offer a rate reduction to our LIPA customers, said Law. “LIPA can offer this rate decrease due to lower than projected natural gas costs as well as our hedging program and the dual fuel capabilities at our power plants which allows us to use gas or oil, whichever is cheaper.
This is the third reduction of the power supply charge within the past year.
In these difficult economic times every little bit of help we can provide to Long Island families matters.”
The reduced Power Supply Charge will take effect June 1, and when it does, LIPA’s rates will be at their lowest level since October 2005.